Why you need a Realtor to Sell your Home

Every year, a small portion of homes are put up for sale by the owner (FSBO). But according to the National Association of REALTORS® (NAR), FSBOs will have a far more difficult time getting off the market and will typically sell for much less. Here’s a few reasons why hiring an agent can save you time, energy, unneeded stress, and money.

You’ll SAVE money with a Realtor (yes, really)

The number one, and usually only, reason that a homeowner wants to sell without an agent is to save money. But this is a common and very costly misconception. The realty is, FSBO homes sell for an average of $40,100 less than a house listed by a professional. That is quite a bit more than the 3% you *think* you are saving. FSBO homes also sit on the market much longer and typically end with a ton of stress, costly mistakes, and in the end need to be re-listed on the MLS anyways. Read on to learn more ways you are better off with an agent…

Advocate For You

Agents are required to have your best interest in mind, which can be a breath of fresh air during a particularly stressful process. It’s always beneficial to have an expert opinion to back you up and marketing expertise to make sure your home is seen by the right people. Without a Realtor on your side, the only agent in the transaction is the agent working in the best interest of the Buyer. When drafting legally binding documents, you are putting a lot of trust in an agent that is working on someone else’s behalf. Plus, your agent will make sure that all parties meet their deadlines and adhere to the contract (more on contracts later). They will also help with your inspection negotiations and know which items are reasonable requests and when it makes sense to push back.

Pricing and Negotiation skills

You need to know how to price your home accurately for the current market. A home that is not listed at the right price from the beginning will take months instead of weeks to sell, if it sells at all. Without having a professional marketing analysis on your home, you could be pricing it too high and scaring off buyers or pricing it too low and leaving money on the table (money you could have used for an agent). Plus, if you do get a buyer to submit an offer despite an accurate price, the appraisal process from the bank might derail the entire transaction if it doesn’t match up. If you don’t fancy yourself an expert negotiator, that’s where a real estate agent comes in. REALTORS® have mastered the art of negotiating and can ensure your home sells for a fair price. A big part of the negotiation process is understanding incoming offers and how to draft counter offers. Keep in mind that the highest offer is not always the best offer. There are many other factors to consider when accepting an offer. For example, who the buyer’s lender is and what type of loan they are approved for can make a huge difference in how smooth the transaction goes. A good agent knows the “good lenders” from the “trouble lenders” and can help advise you. Or how about when there is a Bump Clause attached to the offer or an Escalation Clause. Or a Broker Addendum or Testing Contingency. Choosing between multiple offers can get very overwhelming, complicated, and confusing especially in a busy market where offers are often accompanied by multiple Addendums, Clauses, Additional Provisions, and Contingencies.

Confusing Paperwork

A WB-11 or Wisconsin Offer to Purchase Contract is a 9 page legally binding document. Considering that you have hundreds of thousands of dollars on the line with the sale of your property, I suggest you thoroughly understand what this contract states and what you are agreeing to. Your agent can explain everything to you in basic terms and handle the often difficult process of navigating a real estate transaction. If you make a mistake in your paperwork or word something wrong, it can quickly cost you the sale or, sometimes worse, legally bind you to something you didn’t realize you were agreeing to. You also need to be aware of your legal obligations, including your real estate condition report and disclosures that need to be provided with the listing.

A Neighborhood Authority

Choose an agent with extensive knowledge of the area you live in. Your agent will know the average price of homes in your area, plus extra information you might not be able to find in an internet search. Every neighborhood, and every house within that neighborhood, is unique and needs a specific marketing plan in order to sell for the best possible price. A sellers market does not mean that houses sell themselves. Did your neighbor have a line out their door and multiple offers the first weekend on the market? That’s because it was priced and marketed properly and that doesn’t mean your house will sell the same way or for the same amount. Analyzing “comps” for your home is very complicated and looks at many more variables than just square footage and location. Plus, the real estate market is ever-changing and a marketing technique that worked at one point in time might need to be adjusted even as little as a month later.

Advice and Marketing

A good agent knows what attracts Buyers most and can give advice on things to improve around the house before listing. Anything from wall decor to minor remodeling updates, your agent knows what has the best return on your investment and how to best grab the attention of most buyers. Some agents (me) also include complimentary staging and professional HD photography which are both ESSENTIAL in today’s market where first impressions are formed online at first glance. You want your listing to look like a Pinterest page! And for some properties, drone videos and photography have become incredibly useful for marketing. In addition to a stand-out presentation, having the knowledge of current marketing trends including social media and internet syndication make the world of a difference. Gone are the days where you take a couple quick photos and call it a day. Implementing a marketing strategy across social media platforms, email lists, website SEO, and networking are all essential to selling your home in today’s market and getting the best price possible.

Safety and Vetting Buyers

Have you ever sold anything on Craigslist or Facebook Marketplace? Do you usually meet the buyer at a public location instead of at your home for safety? When you list your home for sale, you are literally opening up your door to complete strangers. Some of these people can pose as interested buyers but actually have ill intent. They may be casing your home for valuables and noting possible points of entry, or worse, have an intent to harm you once you are alone in your home together. Your agent has your safety as top priority and will only allow buyers to enter your home that have been vetted and accompany an agent during the showing.

Bottom Line

You probably don’t have a lot of experience with the ins and outs of real estate transactions and the current market. The industry can be tricky to navigate, but an agent has the education and experience to back up his or her advice.